FEBRUARY 15, 2020 2019 BY TOM FOX

In today’s edition of Daily Compliance News:

  • Tesla under yet another SEC investigation. (NYT)
  • Listen to the Flight Attendant-it could save you from 2 years in prison. (NYT)
  • Raytheon under SEC probe. (WSJ)
  • AirAsia CEO to step down during investigation he received bribes. (BBC)

Companies have finally come to realize that institutional justice and fairness are perhaps the most basic tenet of any successful workplace. If employees believe they will be treated fairly, it will engender a level of trust that can work to not simply motivate employees but lead to a more successful workplace and, at the end of the day, a more profitable company. This encompasses the entire lifecycle of the employment relationship, from hiring through separation. It works in areas as seeming disparate as compensation and incentives, discipline, promotion and internal reporting.

The issue of Institutional Justice is most clearly seen in the area of discipline. This can be in the overall application of a compliance program to all employees, Board members and senior managers. One of the areas which Human Resources  can operationalize your compliance program is to ensure that discipline is handed out appropriately and consistently across an organization and to reward those employees who integrate such ethical and compliant behavior into their individual work practices. In addition to providing a financial incentive for ethical behavior, it also provides a sense of institutional justice. Institutional justice comes from procedural fairness and is one area that will bring credibility to your compliance program

Three key takeaways:

  1. The DOJ and SEC have long called for appropriate and consistent application of both incentives and discipline.
  2. The Fair Process Doctrine will help set institutional justice as the norm in your organization.
  3. Inconsistent application of discipline will destroy your compliance program credibility.


In this episode of Life with GDPR, Jonathan Armstrong and Tom Fox have their first emergency podcast. Earlier this week, the Irish Data Protection Commission raided Facebook in Ireland over the company’s announced plan to begin a dating service on Valentine’s Day.

Some of the highlights in this episode include:

  1. What is the to-do all about?
  2. Do European data protection authorities have dawn raid powers?
  3. What might the Irish Data Protection Commission have been looking for in this raid?
  4. What is the role of a DPIA in this process and why is it so critical?
  5. When should a DPIA be carried out?
  6. How can a DPIA a mitigating or aggravating factor?
  7. What is the importance of training around DPIAs?
  8. What does this mean for companies and clients going forward?


Cordery Breach Navigator

Cordery Client Alert “Ireland’s Data Protection Authority Halts Facebook Dating Service

We have been getting accountability all wrong in the compliance profession. It’s not a set of tasks – it’s a way of thinking and it has to come from the heart as well as the head. On Accountability: The Heart of Compliance Tom Fox and Sam Silverstein dig into what accountability means to the corporate compliance function and business organizations and most significantly, how to make it an integral part of your culture. In this episode Sam and I conclude our three-part series to considering the current disaster Boeing finds itself in from the accountability perspective and what it might do to crawl out of the deep hole it finds itself in. In this Part 3, we consider accountability to other stakeholders and what accountability means in a heavily regulated industry. Some of the highlights include:

  • What is the role of honor in accountability?
  • What are the three standards of an accountable legacy?
  • The role of culture is well understood in the compliance community. What is the role of accountability in creating and sustaining a great culture?

For more information on Sam Silverstein and his work on accountability, click here.

As Jim Crane apologizes for the Astro cheating by announcing to the world the Astros were the best team in 2017 so go pound sand if you don’t like it, Jay and Tom are back to consider some of the top compliance articles and stories which caught our eye this week.

  1. Trump orders DOJ to cut Roger Stone sentence recommendation. Eileen Sullivan in the NYT. Sara Kropf considers the legal angle for defense attorney’s in Grand Jury Target.
  2. Is data privacy a lifestyle? Jessica Wilburn explores in Navex Global’s Ethics and Culture Matters blog.
  3. Compliance budgets are getting tighter. Matt Kelly considers in Radical Compliance. Tom and Matt take a deep dive in Compliance into the Weeds.
  4. Britain and France’s cooperation in the Airubs investigation and enforcement action. Branislav Hock in Risk and Compliance.
  5. Game changes in compliance training. Jaclyn Jaeger in Compliance Week. (sub req’d)
  6. What is the power of proactive monitoring? Jay explores in CCI.
  7. Worried about CCO liability? Matt Kelly explores on Radical Compliance.
  8. Wistful thinking that FCPA enforcement going away. Bill Steinman in the FCPA Blog.
  9. Why Board governance around compliance must change. Mike Volkov on Corruption Crime and Compliance.
  10. On the Compliance Podcast Network, Tom begins a one month look at the role of HR in compliance on 31 Days to a More Effective Compliance Program.This week saw the following offerings: Monday-6 core principles for compliance incentives; Tuesday-designing comp to incentivize compliance; Wednesday-exec comp and compliance incentives; Thursday-sales incentives and compliance; Friday-instituional justice and fair process. Note 31 Days to a More Effective Compliance Program now has its own iTunes channel. If you want to binge out and listen to only these episodes, click here.

Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.